Spotify’s spot stock climbed more than 3 percent in early pre-market trading after it ended September with 306 million paying premium subscribers, topping its 305 million forecast. The quarter also brought €5.0 billion in revenue, matching guidance and giving investors a clean read on growth and pricing power.
306 million premium subscribers came after 300 million at End of June, a gain of 6 million in one quarter. Spotify also lifted monthly active users to 788 million from 777 million, while revenue rose 16 percent, or 14 percent on a constant currency basis, to €5.0 billion ($5.6 billion).
Spotify and AI spending
€672 million in operating income beat the €670 million guidance, and Alex Norström said, “This was a quarter where we did what we said.” He added, “We’ve built a strong business that keeps compounding, we invest when we see a path for growth, our costs are moderating, and there is more runway ahead.”
26 percent higher operating expenses complicated that profit beat. Spotify said the increase came mainly from marketing, cloud and AI spend tied to growth initiatives, while Gustav Söderström said, “Spotify is in one of the few categories that actually stands to thrive in the agentic age.” He added, “This is because agents excel at replacing and taking care of things people would rather not do.”
End of September revenue guide
818 million monthly active users, €820 million in operating income, 316 million premium subscribers, and €5.2 billion in revenue are the current-quarter targets. If Spotify reaches them, the company will have kept the top line, user base and profit path moving at the same time, even with spending still rising.
“People love getting rid of chores,” Söderström said. “But entertainment is the opposite.” He added, “Nobody asks an agent to “summarize a song” for them,” a line that points to why management thinks Spotify’s user habits can hold up even as AI tools spread.
